Contracts
Under the NC Offer to Purchase, if a buyer terminates AFTER the due diligence period without a valid contractual reason, what happens to the earnest money deposit?
AIt is returned to the buyer
BIt is forfeited to the seller✓ Correct
CIt is split equally between buyer and seller
DIt is returned to the listing broker's trust account
Explanation
If a buyer defaults after the due diligence period, the earnest money deposit is forfeited to the seller as liquidated damages under the standard NC contract.
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